AGP Executive Report
Last update: 5 hours agoRBA Decision: The Reserve Bank of Australia held the cash rate at 4.35% for a second straight meeting, warning inflation risks still lean to the upside and keeping the door open to further hikes if needed. Inflation & Housing: In its updated forecasts, the RBA said weaker housing conditions will weigh on GDP growth in 2026, with property prices assumed to keep declining gradually as inflation returns toward target. Market Watch: ASX sentiment stayed cautious ahead of the decision, with banks in focus after Westpac flagged a 20% drop in mortgage applications following the May federal budget, adding to worries about bank earnings. Mortgage Pressure: New research from Finder puts “mortgage stress” at 55% of borrowers, using a benchmark of spending more than 30% of after-tax income on repayments. Home Loan Competition: Canstar data shows the number of lenders offering variable rates under 6% has jumped to 49, as competition heats up ahead of the RBA’s next move. Housing Forecasts: ANZ also warned capital city prices could fall further, forecasting larger declines for Sydney and Melbourne over the next two years. Broker Lending Shift: Mortgage broker market share continues to rise, with brokers facilitating 81% of new home loans in the March 2026 quarter, underscoring how borrowers are navigating tighter conditions through intermediaries.
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